Meta's Decision to Close Three VR Studios in Metaverse Downsizing

Armature, Sanzaru, and Twisted Pixel Shut Down; Supernatural's New Content Halted

In a move reflecting the company's strategic shifts, Meta has decided to close three of its virtual reality studios amid layoffs concentrating on its metaverse ventures. The studios facing closure include Armature, Sanzaru, and Twisted Pixel. Furthermore, the VR fitness platform, Supernatural, will no longer be receiving updates with new content.

Staff members from Twisted Pixel, known for launching Marvel's Deadpool VR, and Sanzaru, associated with the renowned Asgard's Wrath, shared their reactions to the shutdowns on social media. Additionally, reports indicate that Armature, famous for adapting Resident Evil 4 for Quest, will also cease operations, although Supernatural's existing application version remains supported.

A representative from Meta confirmed these developments. 'We recently mentioned that we are reallocating some of our investments from Metaverse initiatives towards Wearables,' the spokesperson articulated in a statement to Engadget. 'This initiative is part of that strategy, where we intend to reinvest cost savings to foster wearables' growth this year.'

The downsizing raises concerns about Meta's long-term dedication to the virtual reality ecosystem it has extensively invested in. The company has not introduced any new VR hardware since the release of the Quest 3S in 2024. Furthermore, last month, it suspended planned Horizon OS headsets from manufacturers like Asus and Lenovo. Now, Meta is also reducing its own game development efforts.

Internally, despite these changes, Meta asserts its ongoing commitment to industry support. Oculus Studios director Tamara Sciamanna emphasized in a memo, as reported by Bloomberg, 'These modifications don't signify a withdrawal from video gaming. Our investment is being adjusted to give more priority to our third-party developers and collaborators, ensuring sustained viability.'